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To fix a water damaged iPod®, you must first ensure the device is completely dry, inside and out, before turning it on. If the iPod® was already on when it got wet, make sure you turn it off immediately—having the device on while wet is a surefire way to cause irreparable damage. To dry the iPod®, simply set it in a safe, dry place for a good period of time—at least a day, maybe two, to be sure it dries completely. Once dry, turn the iPod® on and see if it works; there could be a chance that it will work without further need of repair. If it doesn't work, you can try to fix it yourself by taking it apart, or investigate experts who can fix it for you, either by returning the water damaged iPod® to Apple for repair, or by sending it to an independent repair shop.
Unfortunately, Apple warranties don't cover water damage. You can still send your water damaged iPod® back to Apple for repair, but it will cost you; there's a chance that the cost of repair won't be much less than the cost of a new iPod®. If unable to repair the damage, Apple may be able to offer you a cheaper, refurbished iPod® in exchange for your broken one.
Some people wait until their water damaged iPod® is completely dry, and then attempt to trick Apple technicians into thinking something else caused the damage in order to get a free warranty repair. This isn't a smart idea, however, because Apple outfits each iPod® with a Liquid Contact Indicator. The Liquid Contact Indicator is built into the headphone jack; when dry, it has a silver-white dot, but if the dot comes into contact with water, it has a reddish-pinkish color, even after it has dried out.
There are numerous other companies that offer repair services for water damaged iPods®. Such repair shops may be cheaper than going though Apple. You can do a quick Internet search and shop around for the best repair services for your money.
If you know what you're doing, you may be able to take apart your water damaged iPod® and repair it yourself. This is risky, however, because you take the chance of damaging the device further. Consulting expert sources to learn how to best disassemble and reassemble your iPod® without damaging it might be a good idea. Upon taking apart a water damaged iPod®, some people put the separate parts into bags of rice, a method for helping to thoroughly dry out all components of the device. If you do this, leave the separate pieces in rice bags for at least a day, after which you can put the iPod® back together to see if it works.